In the given week, hot rolled steel coil prices in China have maintained their declining trend. Although a short-lived uptick in prices was observed as of May 6 helped by the futures market, no recovery has been observed in the actual transaction activities. As a result, traders have less confidence in the market.
As regards the short term, most traders have a pessimistic view, thinking that prices will continue to drop down given the lack of any positive factors in the market. Furthermore, they do not believe that steel prices will reach the bottom and bounce back in the current month.
On the whole, with no support from demand, it is expected that domestic HRC prices in China will continue to decline in the coming week.